The Basics Of Real Estate Wholesaling

Are you interested in the world of real estate investing but don’t know where to start? Wholesaling is one of the simplest and most popular ways to get into the industry and make money quickly. This guide will provide you with the basics about what wholesaling is, how it works, and how you can get started.

What Is Wholesaling?

Wholesaling is a form of real estate investing that involves buying a property below market value and then turning around and selling it to an investor quickly for profit. Unlike other forms of real estate investing such as rental properties or fix-and-flips, wholesalers typically do not own any physical property – they are simply connecting buyers with sellers in order to facilitate a transaction.

The Basic Steps Of Wholesale Investing

There are three primary steps to wholesaling: identify an opportunity, cut a deal with the seller, sell the contract to an end buyer (investor).

1. Identify an Opportunity: A wholesaler’s job starts by locating potential deals in their area – either through direct marketing campaigns or simply keeping tabs on local listings. Next it’s important to determine if there is any “meat on the bone” – meaning whether there is enough profit potential within that particular deal (factors like condition of home, amount owed on mortgage, amount of rehab work required etc). Once those factors have been identified and assessed it’s time to move onto step two.
2. Cut a Deal With The Seller: After a suitable deal has been identified it’s time to negotiate terms with the seller that are beneficial for both parties. As part of this process there may be back-and-forth between buyer/seller/realtor until terms are agreed upon by all involved parties. This will also include an “inspection” being done by your end buyer in order to ensure everything meets their expectations prior to closing the contract sale.
3. Sell The Contract: Once negotiations have concluded it’s time for the wholesaler to find a buyer for their contract. (This is was Flippery specializes in!) After finalizing terms with their buyer (including payment for assignment fees), all that’s left is the closing of the deal!

Getting Started In Wholesaling

If you’re interested in getting started with wholesaling, it’s a great time! It should be noted however that while this type of investing offers quick returns and relatively low risk, it requires plenty of research beforehand in order to be successful at finding good deals. To start your journey into real estate wholesaling here are some helpful tips:

• Take classes: Many online sources offer beginner courses on wholesaling which provide valuable information about local markets as well as best practices when dealing with buyers and sellers alike – definitely inquire about these before taking action!
• Network: Attend conferences/meetups related to real estate investing so you can learn from pros who’ve been doing this for years – having someone knowledgeable by your side as you navigate new waters can be invaluable!
• Start small: When first starting out don’t bite off more than you can chew; look for smaller deals which have higher margins but lower risks so you can hone your skills without risking too much capital upfront!